Should I buy now or keep on renting?
You have been renting for years and things aren’t going that well with the landlord. Or the idea of renting a new, larger place which will suit your needs better, has been coming up more and more.
Maybe it’s time to bite the bullet and buy your own property…
Buying a property is a major financial commitment and being indebted to your bank for the next 20 to 30 years can be daunting. So how do you know if you’re ready to enter the property market?
Here are a couple of pointers from Private Property to help you decide whether you should give home ownership more thought:
– You are paying too much rent and it would be cheaper to own your own home. This happens more often than you may think. It is important to keep an eye on local markets and have a clear idea of what bond repayments would be if you bought a similar property.
– You are tired of asking the landlord to maintain the property. If so, it will be far less frustrating to own your own home and take responsibility for necessary repairs and maintenance yourself.
– You want the security of knowing you can live in the same house for as long as you like.
– You’re not planning on leaving the area in which you currently live. It’s highly advisable to only buy where you are planning on staying for a good few years.
– You either have no debt, or it is well-managed.
– You have the means to save for a deposit or have enough money to put down a substantial deposit.
– You are financially stable.
– You actually want to own your own home. It may be time to buy if you enjoy pottering around the garden and fixing things up for yourself. There is far more to owning a house than simply making the monthly bond repayments. It takes commitment and a fair amount of work to keep a property in top shape.
Most people are pleasantly surprised by how much the banks will be willing to lend. One of the easiest ways to determine how much you can afford to spend is by visiting a local estate agent. The agent should be able to give you an idea of how much a bank would be prepared to lend and show you what is on the market in your price range. Private Property also offers online bond calculations that will help you establish what the bond repayments would be on a particular property.
Once you have an idea of how much you can afford, start researching prices in the area of your choice. Don’t rush into any deal without establishing what is – and isn’t – good value for money. Again, chat with your agent about average prices in the area to make an informed decision based on facts.